First-quarter proposal activity for multifamily housing added to prior quarter gains, reaching a near-record Net Plus/Minus Index (NPMI) of 71%. Multifamily topped the four other housing submarkets, though all performed well.
The first three months of the year saw housing lead all 12 major markets in the PSMJ Resources Quarterly Market Forecast survey of architecture, engineering, and construction (AEC) firms.
PSMJ’s NPMI expresses the difference between the percentage of firms reporting an increase in proposal activity and those reporting a decrease. The QMF has proven to be a solid predictor of market health for the industry since its inception in 2003. A consistent group of over 300 AEC firm leaders participate regularly, with 183 contributing to the most recent survey.
Up 13 percentage points from the final quarter of 2020, multifamily’s NPMI of 71% tied its third-highest score since PSMJ added submarkets to its QMF survey in 2006. In addition to the record-high 76% in the 1st Quarter of 2018 and 72% in the 1st Quarter of 2012, Multifamily hit 71% in the 1st Quarter of 2015.
The 2021 performance marked a remarkable rebound for Multifamily, which dipped to -2% in the 1st Quarter of 2020, its first time in negative figures since 2010. In fact, before the COVID-driven drop a year ago, Multifamily’s NPMI had not fallen below 40% since the 3rd Quarter of 2011.
PSMJ Senior Principal David Burstein, PE, AECPM, noted that the strong performance of Multifamily and the entire Housing sector illustrates the industry’s overall economic health, as Housing growth often leads to activity in commercial, institutional and industrial markets as well. Should Congress pass an infrastructure stimulus bill, adds Burstein, the market could see even more historic growth.
Among respondents that work in the Multifamily sector, only 1% said that they saw a decrease in proposal opportunities in the 1st Quarter, compared with 72% that saw a noticeable increase. The remainder said that activity was about the same as the prior quarter.
The Assisted/Independent Senior Living submarket was another highflyer in the 1st Quarter, climbing 32 NPMI percentage points to 59%, tied for 12th -best among all submarkets. Condominiums bounced another 15 NPMI points to 30%, its best showing in three years.
The two other Housing markets measured in the PSMJ survey remain in rarefied air. The Housing Subdivision market recorded an NPMI of 68%, eclipsing its record-tying 4th -Quarter 2020 performance by 17 percentage points. Single-Family Homes dipped 8 NPMI percentage points to 51% – one of only 3 submarkets to see a decline – but that was still good enough for its second-best NPMI performance in the history of the QMF survey.
Related Stories
Sports and Recreational Facilities | Aug 25, 2021
The rise of entertainment districts and the inside-out stadium
Fiserv Forum, home to the 2021 NBA Champion Milwaukee Bucks, proved that the design of the space outside a stadium is just as important as inside.
Architects | Aug 24, 2021
AIA’s Compensation Report reveals how architecture firms weathered the pandemic
According to the report, architecture firms lost 16,000 positions between February and their low in July of 2020.
Architects | Aug 19, 2021
BD+C Events
Building Design+Construction's annual events include the Women in Design+Construction conference and the ProConnect meeting series.
Architects | Aug 19, 2021
Quattrocchi Kwok Architects marks 35 years in business with commitment to social justice
QKA, the largest architecture firm in the North Bay area of San Francisco, has received the JUST 2.0 Social Transparency Label from the International Living Future Institute.
Multifamily Housing | Aug 19, 2021
Multifamily emerges strong from the pandemic, with Yardi Matrix's Doug Ressler
Yardi Matrix's Doug Ressler discusses his firm's latest assessment of multifamily sales and rent growth for 2021.
Resiliency | Aug 19, 2021
White paper outlines cost-effective flood protection approaches for building owners
A new white paper from Walter P Moore offers an in-depth review of the flood protection process and proven approaches.
Resiliency | Aug 19, 2021
White paper outlines cost-effective flood protection approaches for building owners
A new white paper from Walter P Moore offers an in-depth review of the flood protection process and proven approaches.
Urban Planning | Aug 16, 2021
Building with bikes in mind: How cities can capitalize on the pandemic’s ‘bike boom’ to make streets safer for everyone
Since early 2020, Americans have been forced to sequester themselves in their homes with outdoor activities, in most cases, being the sole respite for social distancing. And many of people are going back to the basics with a quintessential outdoor activity: biking. Bike sales absolutely skyrocketed during the pandemic, growing by 69% in 2020.
Senior Living Design | Aug 13, 2021
Designing with dignity for senior living, with Mike Rodebaugh, LEO A DALY
In this exclusive interview for HorizonTV, Mike Rodebaugh, AIA, Senior Living Sector Leader with LEO A DALY, describes how his firm applies "hospitality magic tricks" in its senior living communities, using design to lend dignity to residents, staff, and residents' families and social circles.
Architects | Aug 5, 2021
Lord Aeck Sargent's post-Katerra future, with LAS President Joe Greco
After three years under the ownership of Katerra, which closed its North American operations last May, the architecture firm Lord Aeck Sargent is re-establishing itself as an independent company, with an eye toward strengthening its eight practices and regional presence in the U.S.
